Hyderabad Records Its Best Ever Office Leasing Year at 11.4 mn Sq Ft

The city’s performance reflects Hyderabad’s growing role as a strategic business hub within India’s office ecosystem. GCCs remained the dominant occupier segment, accounting for the largest share of leasing activity in the city. Hyderabad recorded 5.1 million sq ft of leasing by GCCs in 2025, underlining its strength as a preferred destination for global enterprises expanding research, technology and back-office operations. This sustained uptake signals a shift toward higher-value, long-term occupier commitments rather than short-term cost arbitrage.

Office leasing momentum in Hyderabad remained steady across both halves of the year, supported by favourable macroeconomic conditions and strong occupier confidence. While demand remained robust, new office completions in the city stood at 4.3 million sq ft in 2025, representing a sharp year-on-year decline of over 70 percent. This supply-demand imbalance contributed to tightening availability of quality office space across prime micro-markets.

As a result of constrained new supply and consistent demand, office rents in Hyderabad strengthened further during the year. The city recorded a 10 percent year-on-year increase in office rentals in 2025, among the highest growth rates across major Indian office markets. Average rents stood at Rs 77 per sq ft per month in the second half of the year, reflecting rising landlord pricing power amid limited Grade A availability.

From a sectoral perspective, Hyderabad also saw increased activity from third-party IT services, which benefitted from accelerating global adoption of artificial intelligence and digital transformation. Flexible workspace operators maintained steady absorption as occupiers sought scalable workplace solutions aligned with evolving workforce strategies.

Grade A office assets continued to dominate occupier preference in Hyderabad, in line with national trends. High-quality developments with modern infrastructure, sustainability features and operational efficiencies attracted the bulk of leasing, reinforcing the city’s appeal to global and institutional occupiers.

Vacancy levels across Hyderabad remained stable despite muted supply additions, supported by strong net absorption throughout the year. This balance helped the city maintain healthy market fundamentals even as demand reached record levels.

Overall, Hyderabad’s office market closed 2025 on a strong footing, combining record leasing volumes, rising rentals and sustained occupier interest. With GCC-led demand continuing to anchor the market and limited supply supporting rental growth, Hyderabad is well positioned to remain a key driver of India’s office sector momentum as the market moves into 2026.